It’s important to understand the terms other people use in a given chart not only because they allow you to do so with industry experts, but because those terms constitute other abstractions (mental models) that allow you to analyze the world in a quick way.
The same goes for startups: there are many startup terms used by founders or investors. So, here is a list of 10 that will allow you to start communicating and thinking well if you are new to the field:
Any business aims to provide a better-than-competitive solution to a customer’s problem. The biggest startup mistake a founder can make is putting a lot of time, money, and effort into a product that no one needs.
Your price proposal (or offer) is your precise solution (at an express price) to the customer’s problem. To do it right would be good luck or failure.
The Lean method reaches a build-measure-learning cycle that allows you to verify your concepts as temporarily and cost-effectively as possible before dedicating serious resources to them. It is vital to return to the market as temporarily as you can imagine and discard what is not running to locate what works.
The procedure of empirically testing your concepts and hypotheses. You validate your offer by checking it with genuine consumers to see how they react. When you’re doing something innovative, validation experiments are the most productive way to check if you’re on the right track or not.
Here’s what you’re looking for in your validation experiences. If your offer matches the desires of the niche market you are targeting, then you will see a market place charm (people would be interested in your offer and would have to impose on them). Finding PMF is the time when it exits the validation phase and enters the power and expansion phases.
Iterating means making small adjustments to your offering in your product market matching search. After validation experiments, you’ll want to iterate regularly to improve your fit. If what you’re doing doesn’t work at all, then you’ll want to absolutely replace and replace your target offer or market.
A minimum viable product is the key to a lean technique: it is the minimum provision that allows you to verify a concept or concept. If the verifications are successful, you can further expand the product. If not, you have lost as few resources as possible, giving you the option to iterate or rotate and check again.
MVS is used less often than MVP, but it’s like marketing your offering as MVP is building it. A minimum viable segment is an organization of consumers who have a very similar challenge and can be reached through the same channels. This makes them affordable to the technique and makes it easy to check their offer.
The act of advancing its start-up task in the start-up phase without external investors. Most start-ups start at least early, when they don’t have enough traction to attract investors.
Emerging investors come in other shapes and sizes. There are two main types: institutional investors (venture capital and other types of investment funds) and personal investors: informal investors. Both types are interested in projects at other levels of expansion. Seed and seed investors are interested in projects at an initial level and provide capital to verify and validate products, while investors at a later level provide expansion capital to expand a startup after it has discovered PMF.
Change the same old way of doing business in an entire market. Ideally, any cutting-edge startup should be disruptive.